Ethereum Price Prediction: Top Reasons ETH is Set to Rebound in February
Key Insights
- Ethereum price has formed an inverted head-and-shoulders pattern on the weekly chart.
- The Ethereum staking queue has continued rising and is now at a record high.
- Ethereum transactions have continued rising in the past few months.
Ethereum price crashed for three consecutive weeks, reaching its lowest level May last year as the crypto market crash accelerated. ETH token reached a low of $1,713, down sharply from the record high of $4,950. This article explores some of the top reasons why Ethereum price may be on the cusp of a strong rebound in the coming weeks of months.
Ethereum Price Technical Analysis Suggests that the Coin May Rebound Soon
The weekly timeframe chart shows that the coin has been in a strong downward spiral in the past few months, coinciding with the ongoing crypto market crash.
However, a closer look shows that the downward momentum may end soon. For example, the coin has been forming a multi-year inverted head-and-shoulders pattern. This pattern started forming in 2024, with the left shoulder happening in August of that year. Its head happened in April last year, and is now forming the right shoulder.
The coin has formed a morning star candlestick pattern, which is a common bullish reversal sign in technical analysis. At the same time, the Relative Strength Index (RSI) is slowly nearing the oversold level of 30.
Ethereum price chart | Source: TradingView
The last time it moved to the oversold level was in April last year and the coin rebounded from a low of $1,400 to record high. The chart shows that Ethereum always rebounds whenever it moves to the oversold level.
Ethereum Staking Demand is Soaring
The soaring Ethereum staking queue is a sign that investors with a long-term view are waiting to buy, which is highly bullish. A good example of this is Tom Lee’s BitMine, which has moved millions of tokens into staking pools, where they are earning close to a 3% return.
The soaring Ethereum staking queue is a sign that investors with a long-term view are waiting to buy, which is highly bullish. A good example of this is Tom Lee’s BitMine, which has moved millions of tokens to staking pools, where it is earning close to 3% return.
Supply of ETH in Exchanges Continues Falling Despite Rising ETF Outflows
Meanwhile, there are signs that investors are still buying ETH tokens despite the ongoing ETF outflows. Data compiled by SoSoValue shows that spot Ethereum ETFs have shed over $149 million in assets this month. They are in the fourth consecutive month of outflows, bringing the cumulative total net inflows to $11.8 billion. At the peak, these ETFs had nearly $14 billion in inflows.
Ethereum supply in exchanges | Source: CoinGlass
One sign that investors are still buying is that the supply of ETH tokens on exchanges has continued to fall over the past few months. There are now 12.8 million tokens in exchanges, down from last year’s high of 17.8 million. Falling supply on exchanges is usually highly bullish, as it indicates investors are moving them to self-custody.
Ethereum Has Some of the Best Fundamentals
More data shows that Ethereum has some of the best fundamentals in the crypto industry, a trend that has accelerated after the Fusaka upgrade.
Data shows that Ethereum is the most dominant chain in stablecoin transactions, handling over $1 trillion in assets in the past 30 days
More data shows that the network’s transactions, addresses, and fees rose by 37%, 38%, and 85%, respectively in the past 30 days. These transactions rose to over 70 million, while the active addresses jumped to over 15 million.
Ethereum transactions are soaring | Source: Nansen
Ethereum has also become the most dominant player in key crypto industries, such as decentralized finance (DeFi) and real-world asset tokenization.
The post Ethereum Price Prediction: Top Reasons ETH is Set to Rebound in February appeared first on The Market Periodical.
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